Exall banking on small-scale mine for cash

Small-scale production on an alluvial gold deposit on the Yaqui River in Sonora, Mexico, is under way, Exall Resources (TSE) reports.

The company has stockpiled 45,000 cu. metres of mineralized gravels to be processed at 150-cu. metres per hour. A 60-day production test will try to confirm gold grades.

Earlier tests have indicated grades of 0.3 grams per cu. metre. Many areas sampled yielded a grade of one gram, the company says.

The operation should produce between 10,000 and 15,000 oz. per year at an estimated cost of less than US$150 per oz. The coarse gold is amenable to simple gravity methods of recovery.

Exall is banking on this project to generate cash flow.

In other news, Exall has sold its previously announced private placement of 606,500 units priced at $1.65 per unit. Proceeds came to slightly more than $1 million.

Each unit consisted of a common share and common share purchase warrant. Roughly 85% of the units were bought by Exall “insiders.” The company is exploring for copper and gold in Mexico and diamonds and gold in Guyana.